Mortgage on an Investment Property

Where Is Real Estate Investing Most Profitable?

It’s no secret that real estate investing is a wonderful way to diversify and stabilize your portfolio while you see regular monthly cash flow and steady increases to your net worth. However, if your area does not have a good market for rental real estate, house flipping, commercial rental real estate, or whatever real estate niche you want to invest in, then you could be looking at some very bad deals.

Fortunately, as a real estate investor, you do not absolutely have to invest in your own backyard. If you live in an area with a flat or declining market, you may want to consider looking at other areas of the country, where you can find the very best real estate investment deals and get the largest returns on your investments.

Austin, Texas

On a recent list of the best cities to own investment properties in the US, Austin ranked at number five. While Denver, Colorado was higher on the list, this may not be the case for very long. Denver’s property values have been skyrocketing for the past few years, and while those values may continue to rise, market prices are already astronomically high in the most attractive neighborhoods and areas of Denver and the surrounding suburbs.

This phenomenon is not uncommon, and it’s happening in numerous cities around the country. If, for example, you could go back in time to buy property in San Francisco or New York, you could make an incredible profit on your investment today. Without a time machine, investing is nearly impossible for most people in these areas and cities like Denver that have already seen a huge boom.

However, if you look at market trends over the past few months and years, you can see that Austin is primed to see major market value increases. Furthermore, with rental rates rising every year, it is the perfect time to invest in rental properties in this growing city as more and more people move here.

But why is Austin such a great place to invest? Employment in and around the city is on the rise and is currently four percent higher than it was last year. Population growth continues at a positive rate with an increase of just over two percent per year, and Austin homes’ values are experiencing significant annual increases, with roughly nine percent growth over the last year.

Dallas, TX

Just behind Austin and Reno, Nevada, Dallas is another incredible place to invest in real estate right now. As a growing metroplex, the Dallas-Fort Worth area’s population is seeing a huge boom right now. At the same time, the market values for homes have not yet caught up to the demand. There are numerous great deals on single-family and CRE (commercial real estate) properties all over Dallas.

Not only are market prices for those buying homes still good, but there also continues to be a major increase in demand for rental properties in and around Dallas. This means that investors have the potential to buy properties at relatively low rates and then rent them to long- or short-term tenants at very lucrative rental rates.

Texas Is the Place to Invest

Basically, if you are in the market to invest in real estate, Texas has a range of great markets with very profitable investments available. You could purchase single-family homes and turn them into rental properties. You could also invest in an REIT (real estate investment trust) or investment club, or you could opt for real estate crowdfunding. Basically, you can choose whether you want to have a more active or passive role in your real estate investment, and there are numerous properties available. Plus, even with all the developments and houses available, demand for rental properties is so high that it still outstrips supply by a great deal.

If your local real estate markets are not performing the way you would like, you do not have to feel stuck with them. Instead, why not invest in Dallas or Austin, two of the best cities in the entire country to own investment properties?